"Serial-Bubble-Blowers"

This is one of the best epithets I've ever heard about the Federal Reserve bankers! I give fill credit to Peter Schiff (as always!) for this one! Just to clarify the upcoming analysis - the op-ed by Fed Chairman Ben S. Bernanke can be found here. In the op-ed the man practically admits that the Fed's goal is to blow up another fictitious asset bubble, this time in stocks. May I just remind everyone that the current crisis prompted by the collapse of the real estate bubble wouldn't have happened if nobody inflated this bubble in the first place. And may I also remind everyone that the real estate bubble was only created to offset the depression after the last stock market bubble burst in the late 1990's. So now the magicians at the Fed hope to created the mother of all bubbles on top of the last two. Indeed if they succeed (which I doubt) the ensuing recession after that bubble pops will probably mean the end of the world economy as we know it. For that type of policy the Fed definitely deserve the epithet of serial-bubble-blowers. It is difficult for businessmen to resist this free credit. Chairman Bernanke has now freely admitted he hopes to create inflation and trick everyone into believing in false asset prices. Let me just quote from the op-ed itself: "And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion." If this isn't pure Keynesyanism I don't know what is! He wants people to spend their illusory wealth on real consumer goods! What this means is that he thinks of himself as a magician or, better, a GOD. Mr. Bernanke can create wealth out of thin air by pressing a few buttons! Federal Reserve credit is not real wealth. Creation of wealth requires production of it. And production precedes consumption. Chairman Bernanke wants us to sell our fake wealth to other countries in return for consumer goods. I really don't understand why other countries put up with this policy! Even Adolf Hitler, a radical socialist, understood that money has to be backed by production.

But why should we care about the laws of economics? Why should we care about the very fundamentals of human existence? Why should we think of the future? After all, didn't our hero, Lord Keynes, say "The long run is a misleading guide to current affairs. In the long run we are all dead." Keynes was a twisted evil man, and his charm tends to rub of on followers, as in case of all ideological movements. I am like Spencer and Bernanke is like Keynes.